In the vast and dynamic world of investing, there is a constant search for hidden gem stocks. While the spotlight often shines on well-known companies, under-the-radar stocks can sometimes hold the greatest promise. Undervalued and overlooked by most investors, these sleeping giants may harbor untapped potential that can lead to significant growth. The hidden gems in this article could be the key to unlocking exceptional investment opportunities if you seek under-the-radar stocks.

Discovering these undiscovered high-potential stocks requires a discerning eye and an understanding of market dynamics. While they may not boast household names or dominate headlines, these stocks possess unique qualities that set them apart. Investing in these top unknown stocks with growth potential is a rewarding experience for those seeking opportunities beyond the mainstream.

Hidden gem stocks have a unique advantage in surprising the market and outperforming popular stocks, leading to impressive returns. Often overlooked sleeping giants can thrive in niche markets or through innovative business models that position them for unexpected growth. Early identification of these sleeping giant stocks enables investors to capitalize on their untapped potential.

Furthermore, under-the-radar stocks offer an opportunity for investment before the broader market catches on. Unlike fully valued popular stocks, these hidden gems can be acquired at an attractive valuation, maximizing potential returns.

This article aims to explore three under-the-radar stocks that have the potential to become sleeping giants in the investment landscape.

Fortinet (FTNT)

In the fast-paced world of stock investing, where well-known companies often dominate the headlines, it’s crucial not to overlook the hidden gems that lie beneath the surface. Fortinet (NASDAQ:FTNT), a cybersecurity leader, is a prime example of a sleeping giant stock with tremendous potential.

While it may fall under the category of under-the-radar stocks for high returns, Fortinet’s robust growth prospects, undiscovered high potential, and reputation as a top unknown stock with growth potential make it an intriguing investment opportunity. Let us delve deeper into the qualities that position Fortinet as a compelling choice for investors seeking substantial long-term gains.

Fortinet surpasses expectations in the evolving cybersecurity landscape. Instead of struggling, this often underestimated cybersecurity firm consistently achieves its growth objectives and generates substantial profits.

Fortinet defied expectations yet again, surpassing its financial projections in Q1. The company achieved a remarkable 32% year-over-year (YoY) revenue growth to $1.26 billion. Earnings per share (EPS) soared by 82% YoY (or 79% on an adjusted basis), while free cash flow reached $647 million with a 51% profit margin. Q2 is expected to continue this positive trend, with revenue forecasted at $1.3 billion (up 26% YoY) and adjusted EPS anticipated to increase by 42%.

Fortinet, a legacy cybersecurity firm, has excelled in securing the rapidly expanding cloud market while demonstrating profitable growth. Their product sales and services continue to thrive, with a 35% YoY growth rate in Q1 2023. The company’s outlook for 2023 has also been upgraded, projecting a 23% rise in revenue and adjusted EPS.

Fortinet’s ability to adapt to the evolving cybersecurity landscape and capitalize on the convergence of networking and security positions it as a strong contender in the market.

ServiceNow (NOW)

Are you on the lookout for hidden gem stocks with high growth potential? Look no further than ServiceNow (NYSE:NOW), a true sleeping giant in the market. Moreover, often categorized as an under-the-radar stock, ServiceNow has quietly established itself as a powerful player in the technology industry.

With its robust platform, ServiceNow offers a range of innovative solutions that capture the attention of industry insiders. Consequently, this undiscovered gem promises substantial returns for investors recognizing its potential and taking advantage of this top unknown stock.

Specializing in providing software solutions, ServiceNow stands apart from certain consumer-focused software-as-a-service (SaaS) companies, thus remaining relatively less recognized.

The first quarter of 2023 witnessed ServiceNow announcing impressive financial results, with revenue reaching $2.1 billion and adjusted earnings per share amounting to $2.37. Such figures surpassed analysts’ expectations and aligned with ServiceNow’s consistent growth trajectory observed over the past few years.

Furthermore, in Q1, ServiceNow continued its robust growth trend, marking a 20% increase in large customers, defined as those with annual account values exceeding $1 million. This sustained growth has been observed over multiple quarters, and the platform enjoys a high customer retention rate, evidenced by a 98% or higher renewal rate in the last five quarters.

The exceptional performance in Q1 has prompted ServiceNow’s management to revise their subscription growth guidance for 2023, shifting the initial projection of subscription revenue between $8.4 billion and $8.5 billion at the end of 2022 to a revised range of $8.47 billion to $8.52 billion.

When compared to many other SaaS companies facing challenges, ServiceNow’s solid performance makes its stock particularly compelling for investors.

Upwork (UPWK)

Upwork (NASDAQ:UPWK) represents a sleeping giant stock waiting to be discovered by astute investors seeking high returns. As an under-the-radar investment opportunity, Upwork possesses the qualities of undiscovered hidden gem stocks with immense growth potential.

Amidst a macroeconomic landscape, Upwork investors have displayed notable optimism regarding the company’s strategic move to repurchase debt. The rising interest rates have placed significant financial strain on numerous technology companies, making borrowing costs prohibitively high.

Consequently, tech investors have become increasingly vigilant, closely scrutinizing companies’ financial performance, profitability, and debt obligations. Against this backdrop, Upwork’s recent decision to address its debt situation is warmly received by investors, underscoring their appreciation for the company’s proactive approach.

On a separate note, Upwork reported revenue of nearly $161 million during its first quarter, surpassing the $141 million earned in the same period of 2022. However, the company’s gross services volume, a crucial financial metric for its business, remained unchanged at $1 billion.

On the bottom line, Upwork successfully narrowed its non-GAAP (adjusted) net loss to $700,000 ($0.01 per share) compared to the year-ago deficit of $3.5 million. These results outperformed analyst expectations, as industry experts had predicted revenue slightly above $159 million and an adjusted net loss of $0.10 per share.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.